> For the complete documentation index, see [llms.txt](https://funarchy.gitbook.io/funarchy/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://funarchy.gitbook.io/funarchy/security-for-prediction-market/configuration.md).

# Configuration

configuration

This page addresses the structural threats that arise during the process of defining events and setting parameters, which form the foundation of prediction markets. The market topic, RuleBook, time settings, and State are the core elements that determine the ‘rules of the game’ under which the smart contract will execute.

> If rules are ambiguous or parameters are incorrectly set during the initial configuration phase, the market cannot function properly no matter how technically secure the code is. This directly leads to serious security incidents such as frozen funds or improper settlements.

Therefore, we must establish not only clear definition requirements for designing a “decision-capable” market but also parameter verification strategies to safely control the market's lifecycle.&#x20;

This page presents security principles for the design phase, focusing on eliminating ambiguities in the rulebook regarding market topics and managing operational stages safely.

### Market Design & Creation Flow

<figure><img src="https://4210179539-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F2DiVEbUgCTsp2iPassR9%2Fuploads%2FRTxi4flnfnoHG2MVlhfG%2Fimage.png?alt=media&amp;token=9fbb26c3-bb8f-4c66-9fb1-685aeaad287a" alt=""><figcaption></figcaption></figure>


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